FSA to Demand Banks Strengthen Customer Identity Checks

Politics

Tokyo, Oct. 17 (Jiji Press)--Japan’s Financial Services Agency plans to revise its guidelines on regulating the banking sector to demand stricter customer identity checks for account transfers related to electronic payment services, it was learned on Saturday.

The move comes in response to a series of cases at banks across the country of fraudulent withdrawals via major mobile carrier NTT Docomo Inc.'s <9437> e-payment service.

The FSA is considering the guidelines revision as early as within fiscal 2020, aiming to prevent such fraud from reversing the current trend for contact-free cashless payment, which is increasingly common in Japan against a backdrop of the coronavirus epidemic, according to informed sources.

Fraudulent withdrawals via the NTT Docomo service at Japan Post Bank <7182> and regional banks came to light in September. At the banks, the e-payment service was available through simple identification procedures.

In the wake of the fraud cases, the FSA told banks and e-payment service providers to suspend user registrations and fund transfers unless they tighten identification procedures, including through the introduction of one-time passwords.

[Copyright The Jiji Press, Ltd.]

Jiji Press